HMRC shared another company yesterday (2nd March 2023), on their ‘named tax avoidance schemes, promoters, enablers and suppliers’ list.
Hive Umbrella Ltd (HUL) were caught using a scheme that offers National Minimum Wage with ‘Ad-hoc Pay Advances’. This ‘advance’ represents an interest free debt (to HUL) which is offset against a future bonus when HUL decide to grant it to the user, eliminating the debt. Advances are made to the user during each payroll cycle for their work, and an administration fee is charged by HUL. The scheme user undertakes work for an agency/end client and submits timesheets to HUL, who invoice the agency for the work done. The scheme user then receives a single payment from HUL which consists of two elements. The first element is the NMW salary with tax and National Insurance contributions paid. The second element, described as ‘advance drawn down’ is not taxed.
HMRC has now published the details of 36 tax avoidance schemes and their promoters and will continue to add to this list in the coming months. This is not a complete list of all tax avoidance schemes currently being marketed or a complete list of all promoters, enablers, and suppliers. HMRC recommends steering clear of all avoidance schemes.
HMRC’s Tax Avoidance – Don’t Get Caught Out campaign offers a range of tools to customers to help them steer clear of avoidance schemes, such as the interactive risk checker, payslip guidance, and case studies demonstrating the risks of becoming involved in a tax avoidance scheme and the warning signs customers should look out for.